Customer satisfaction and customer loyalty significantly influence your business success. The various contact points of the customer during his customer journey leave their mark on his customer satisfaction and loyalty. But which contacts or which processes in the company have to be paid particular attention? And how do these affect the profit? Too often we find that these questions remain unanswered. Process prioritization based on well-founded data contributes enormously to ensuring that everyone within the company is focused on getting better and increasing success.

A case study

A customer contacts us and wants to know what changes are needed to grow his business. First and foremost we will conduct an analysis of the financial situation and customer satisfaction. From this, two core quantities can be derived:

  • Share of Wallet: What part of their budget do customers spend on this business?
  • Customer Satisfaction Index (CSI): How satisfied are the customers with the products or services received?

A combination of these two values allows a crystal clear understanding of how customer satisfaction impacts the “share of wallet”. Often there is a distinct dependency.

Figure 1: Distinct relation between Share of Wallet and Customer Satisfaction.

The conclusions from such an analysis are simple: transparency. We deliver vivid results that are tangible to everyone, without incomprehensible statistics, unclear speculations or black-box techniques. The evaluation and discussion should focus on what you really need to do to improve.

Return on Investment

The relationship between share of wallet and CSI shows to which extent entrepreneurial success can be influenced by increasing customer satisfaction. Say, for every percentage point of customer satisfaction, the share of wallet rises by 0.5%. Let’s further presume, you increase customer satisfaction by 1%. The pure return would then be the income that results from having increased the share of wallet by 0.5%. The numbers depend on the value of the entire share of wallet and may as well be in the thousands as millions – for a satisfaction increase of only one percent.

In einem letzten Schritt werden die gesammelten Ergebnisse zusammengefasst und die zufriedensten Kunden als Zielsetzung formuliert. Die entscheidende Frage ist: Was wäre die Rendite, wenn alle Kunden den gleichen Share of Wallet hätten wie diejenigen mit der höchsten Zufriedenheit? Mit den erhobenen Daten ist es uns möglich, diese Frage zu beantworten. Wir können realistische Potenziale für alle Ebenen errechnen, zusätzlich zu einer Darstellung des Gesamtpotenzials. Jede(r) ManagerIn (Filial-/RessortleiterIn etc.) erhält genaue Handlungsempfehlungen, um diejenigen Kunden zu priorisieren, die das größte Potenzial für eine Umsatzsteigerung bieten.

In a final step, the collected results are summarized and the most satisfied customers are formulated as our goal. The key question is: What would the return be if all customers had the same share of wallet as those with the highest satisfaction? With the data collected, we are able to answer this question. We can calculate realistic potentials for all levels, in addition to a representation of the total potential. Every manager (branch / department manager etc.) receives recommended courses for action in order to prioritize those customers who offer the greatest potential for an increase in sales.

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